Exam 4: Process Selection

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Apply the concepts of plant-within-a-plant (PWP)and mass customization to service organizations.Discuss.

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A company makes necklaces with attached letters.Department A manufactures the necklace chains and letters ahead of demand.Department B assembles the necklaces for specific names when orders are received.Departments A and B are,respectively:

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In an assemble-to-order process,the sub-assemblies are made-to-order,while final assembly is made-to-stock.

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Hayes and Wheelwright argued that it is profitable for firms to operate along the diagonal of the product-process matrix.Justify the reason surrounding their argument.Can you think of situations in which firms could move away from the diagonal and yet remain profitable?

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An important lesson from the product-process matrix is:

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Process efficiency is usually highest in which type of process?

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An assembly line process requires high labor skills and high pay.

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An entrepreneur is planning to start a factory to produce high-tech plastic containers in high volumes.She will use either an assembly line or batch process and has selected two possible sites,one in a small town and one in a big city.She has discovered the following: Small Town City Capital Not readily available Readily available Labor Unskilled available All types of labor Market Small Large Based on the information just presented,which of the following should be chosen?

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Mass customization uses a make-to-stock process.

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An example of an industry that produces a few major discrete products and uses a product layout is:

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Job shop operations typically use special-purpose equipment.

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Most batch and job shop operations have throughput ratios of 90 to 100%.

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Which of the following is/are among the factors that appear to influence process selection?

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The key performance measure of a make-to-order process is the lead-time.

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The type of processing system that has high product variety and moderate capital investment is:

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Classify the following examples as continuous,line,batch,or project flow processes.Identify the type of Labor (skills,task type,& pay),Capital (investment,inventory,& equipment),Control and Planning (production and inventory control)requirements for these processes.Explain your choices.

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Service level and capacity utilization are performance measures of a _____ process.

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